Looking for new ways to grow revenue and escape commodity-like price wars, manufacturers are aggressively pursuing new business strategies. To keep growing in 2019 and beyond, every manufacturer needs to transition away from being 100% dependent on transaction revenue and start growing new businesses. Many are turning to smart, connected products and the opportunities they provide for generating much-needed services revenue.
Digitally Transforming Their Way To Growth: How The Top 10% Do It
Based on a recent survey by Configit of 250 North American manufacturers, the following are the characteristics of manufacturers growing 10% a year or more and excelling at digitally transforming their businesses:
- Manufacturers growing 10% a year or more are exceptionally adept at integrating analytics, Business Intelligence (BI), mobility, real-time monitoring, and PLM, ERP and CRM systems into a unified growth platform.
- They lead all other manufacturers in their ability to use the Internet of Things (IoT) technologies to fuel current and future growth including value-added product services, product-as-a-service, revenue sharing and maintenance, repair and overhaul (MRO) as a service.
- While their PLM, CAD, ERP, and CRM systems all operate at different cadences or speeds, they’re able to synchronize all of these systems around a single, unified product model using a Configuration Lifecycle Management (CLM) platform.
- By managing their many product variations using a lifecycle approach, they’re able to deliver what all their customers want most: the flexibility of getting short-notice production runs done quickly for customized, configure-to-order products.